105140 Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 

15 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4On December 2, 2024, the Exchange filed to 

amend the Fee Schedule (NYSEARCA–2024–107) 

and withdrew such filing on December 3, 2024 (SR– 

NYSEARCA–2024–109), which latter filing the 

Exchange withdrew on December 17, 2024. 

5See Trader Update, November 21, 2024 

(announcing that on November 22, 2024, the 

Exchange would begin listing and trading options 

on GBTC, BTC, and BITB), available here, https:// 

www.nyse.com/trader-update/ 

history#110000945911. 

DTC reserves the right to not respond 

to any comments received. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 13 of the Act and paragraph 

(f) 14 of Rule 19b–4 thereunder. At any 

time within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

DTC–2024–015 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to file 

number SR–DTC–2024–015. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of DTC 

and on DTCC’s website (www.dtcc.com/ 

legal/sec-rule-filings). Do not include 

personal identifiable information in 

submissions; you should submit only 

information that you wish to make 

available publicly. We may redact in 

part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to File Number SR–DTC–2024–015 and 

should be submitted on or before 

January 16, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–30684 Filed 12–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101962; File No. SR– 

NYSEARCA–2024–114] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify the NYSE Arca 

Options Fee Schedule 

December 18, 2024. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

17, 2024, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) regarding certain transaction 

fees. The Exchange proposes to 

implement the fee change effective 

December 17, 2024. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

the Fee Schedule to modify certain 

transaction fees. Specifically, the 

Exchange proposes to adopt pricing 

incentives to encourage trading in 

options on Exchange Traded Funds that 

hold digital assets (‘‘digital asset ETFs’’) 

that are listed on NYSE Arca Equities. 

The Exchange proposes to implement 

the fee change effective December 17, 

2024.4

On November 22, 2024, the Exchange 

began trading options on the following 

digital asset ETFs, each of which is 

listed on NYSE Arca Equities: Grayscale 

Bitcoin Trust ETF (GBTC); Grayscale 

Bitcoin Mini Trust ETF (BTC); and 

Bitwise Bitcoin ETF Trust (BITB).5 To 

incentivize trading in these newly 

available options on digital asset ETFs 

(as well as in other options series in 

digital asset ETFs that may be listed on 

NYSE Arca Equities in the future), the 

Exchange proposes to offer a per 

contract discount or credit, which may 

be combined with other discounts or 

credits unless otherwise specified. 

Specifically, the Exchange proposes 

that executions in options on NYSE 

Arca Equities-listed digital asset ETFs 

(excluding QCC transactions) will 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices 105141 

6See proposed Fee Schedule, Endnote 12, 

currently held as ‘‘Reserved.’’ The Exchange 

proposes to add reference to new Endnote 12 to 

reflect the transaction fee change in the applicable 

sections of the Fee Schedule Fee. See, e.g., 

proposed Fee Schedule, ELECTRONIC COMPLEX 

ORDER EXECUTIONS, TRANSACTION FEE—PER 

CONTRACT. 

7See Fee Schedule, QUALIFIED CONTINGENT 

CROSS (‘‘QCC’’) TRANSACTION FEES AND 

CREDITS. 

8See proposed Endnote 12. The Exchange also 

proposes to specify these exclusions in the 

applicable sections of the Fee Schedule. See 

proposed Fee Schedule, LIMIT OF FEES ON 

OPTIONS STRATEGY EXECUTIONS and FLOOR 

BROKER FIXED COST PREPAYMENT INCENTIVE 

PROGRAM (the ‘‘FB Prepay Program’’). Consistent 

with the Fee Schedule, manual executions of 

options on digital asset ETFs would be subject to 

the Firm and Broker Dealer Monthly Fee Cap, 

including the assessment of the incremental service 

fee of $0.01 per contract once that Cap has been 

reached. See FIRM AND BROKER DEALER 

MONTHLY FEE CAP (providing that, ‘‘[o]nce a 

Firm or Broker Dealer has reached the Firm and 

Broker Dealer Monthly Fee Cap, an incremental 

service fee of $0.01 per contract for Firm or Broker 

Dealer Manual transactions will apply . . . .’’). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4) and (5). 

11See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 12The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

13Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of equity-based ETF options, see 

id., the Exchanges market share in equity-based 

options increased slightly from 12.19% for the 

month of October 2023 to 12.55% for the month of 

October 2024. 

receive an additional discount of $0.05 

per contract on electronic take liquidity, 

manual, and electronic complex-tocomplex executions or an additional 

credit of $0.05 per contract on electronic 

post liquidity executions.6 The 

Exchange proposes to exclude QCC 

transactions from this proposal because 

QCC transactions are subject to separate 

fees and credits.7 Similarly, the 

Exchange proposes that the alreadydiscounted executions in options on 

NYSE Arca Equities-listed digital asset 

ETFs will not be included in the daily 

fee cap on strategy executions (i.e., the 

Limit of Fee [sic] on Options Strategy 

Executions) nor will they be included in 

calculations for or rebates available 

through the Manual Billable Rebate 

Program.8

Although the Exchange cannot predict 

with certainty whether any OTP Holders 

would seek to trade digital asset ETF 

options, the Exchange believes that the 

proposed change would incentivize 

OTP Holders to submit these types of 

orders to the Exchange, which brings 

increased liquidity and order flow for 

the benefit of all market participants. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,10 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The proposed change to the Fee 

Schedule are reasonable, equitable, and 

not unfairly discriminatory. As a 

threshold matter, the Exchange is 

subject to significant competitive forces 

in the market for options securities 

transaction services that constrain its 

pricing determinations in that market. 

The Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. In 

Regulation NMS, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 11

There are currently 18 registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.12

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in October of 2024, the 

Exchange had 12.55% market share of 

executed volume of multiply-listed 

equity & ETF options trades.13 In such 

a low-concentrated and highly 

competitive market, no single options 

exchange possesses significant pricing 

power in the execution of option order 

flow. Within this environment, market 

participants can freely and often do shift 

their order flow among the Exchange 

and competing venues in response to 

changes in their respective pricing 

schedules. 

The Exchange believes that the 

proposed discount/credit of five cents 

per contract is reasonable because it is 

designed to encourage liquidity in 

options classes on digital asset ETFs 

newly listed and traded on the 

Exchange, thereby promoting market 

depth, price discovery and 

improvement, and enhanced order 

execution opportunities to the benefit of 

all market participants. Moreover, the 

proposal is designed to encourage OTP 

Holders to utilize the Exchange as a 

primary trading venue for options on 

digital asset ETFs. 

The Exchange believes the proposed 

rule change is an equitable allocation of 

its fees and credits and is not unfairly 

discriminatory as it available equally to 

all similarly-situated market 

participants on an equal and nondiscriminatory basis. 

To the extent the proposed change 

continues to attract greater volume and 

liquidity, the Exchange believes the 

proposed change would improve the 

Exchange’s overall competitiveness and 

strengthen its market quality for all 

market participants. In the backdrop of 

the competitive environment in which 

the Exchange operates, the proposed 

rule change is a reasonable attempt by 

the Exchange to increase the depth of its 

market and improve its market share 

relative to its competitors. The 

Exchange’s fees are constrained by 

intermarket competition, as OTP 

Holders may direct their order flow to 

any of the competing options exchanges 

that list and trade options on digital 

asset ETFs. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Instead, as discussed above, the 

Exchange believes that the proposed 

changes would encourage the 

submission of additional liquidity to a 

public exchange, thereby promoting 

market depth, price discovery and 

transparency and enhancing order 

execution opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 


ddrumheller on DSK120RN23PROD with NOTICES1
105142 Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices 

14See Reg NMS Adopting Release, supra note 11, 

at 37499. 

15The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

16Based on OCC data for monthly volume of 

equity-based options and monthly volume of ETFbased options, see id., the Exchanges market share 

in equity-based options increased slightly from 

12.19% for the month of October 2023 to 12.55% 

for the month of October 2024. 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(2). 

19 15 U.S.C. 78s(b)(2)(B). 20 17 CFR 200.30–3(a)(12). 

of individual stocks for all types of 

orders, large and small.’’ 14

Intramarket Competition. The 

proposed change is designed to 

encourage market participants to 

execute options on digital asset ETFs 

(and, in particular, those listed on NYSE 

Arca Equities) and to direct such 

executions to the Exchange. The 

proposed pricing incentive will be 

available equally to all similarlysituated market participants. As such, 

the proposed change would not impose 

a disparate burden on competition 

among market participants on the 

Exchange. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

17 competing option exchanges if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. Based on publiclyavailable information, and excluding 

index-based options, no single exchange 

has more than 16% of the market share 

of executed volume of multiply-listed 

equity and ETF options trades.15

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in October 2024, the 

Exchange had 12.55% market share of 

executed volume of multiply-listed 

equity and ETF options trades.16

The Exchange believes that the 

proposed rule change reflects this 

competitive environment because it 

modifies the Exchange’s fees in a 

manner designed to encourage market 

participants to direct trading interest 

(particularly for options on digital assets 

ETFs) to the Exchange. To the extent 

that this purpose is achieved, all the 

Exchange’s market participants should 

benefit from the improved market 

quality and increased opportunities for 

price improvement. 

The Exchange believes that the 

proposed change could promote 

competition between the Exchange and 

other execution venues, including those 

that list and trade options on digital 

asset ETFs, by encouraging additional 

orders to be sent to the Exchange for 

execution. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 17 of the Act and 

subparagraph (f)(2) of Rule 19b–4 18

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 19 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2024–114 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–NYSEARCA–2024–114. 

This file number should be included on 

the subject line if email is used. To help 

the Commission process and review 

your comments more efficiently, please 

use only one method. The Commission 

will post all comments on the 

Commission’s internet website (https:// 

www.sec.gov/rules/sro.shtml). Copies of 

the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEARCA–2024–114 and should 

be submitted on or before January 16, 

2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–30682 Filed 12–23–24; 8:45 am] 

BILLING CODE 8011–01–P 


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